Coal and Gas Extension to Save Queenslanders $26 Billion and Slash Power Bills

The Crisafulli Government’s Energy Roadmap represents a major strategic shift in Queensland’s energy policy, moving away from aggressive renewable-only targets toward a “balanced” approach that prioritises existing fossil fuel assets and private investment.

Here is an expanded look at the core pillars and specific projects driving this roadmap.

1. The “Bill Relief” Strategy

The headline achievement of the Roadmap’s first six months is the forecasted 10% drop in electricity prices for the 2026–27 financial year.

• The Mechanism: This reduction is driven by the draft Default Market Offer (DMO) and the Queensland Competition Authority (QCA) determination.
• Residential Impact: Households in South East Queensland could see prices fall by 10.1%, while regional Queenslanders are looking at a 9.7% decrease.
• Small Business Impact: Regional small businesses could see even larger relief, with forecasts suggesting an 11.3% drop.

The government attributes these drops to improved maintenance of existing state-owned coal plants (backed by a $1.6 billion Electricity Maintenance Guarantee) which has increased supply and lowered wholesale volatility.

2. The Taroom Trough: A New Fuel Province

A significant expansion of the Roadmap is the focus on the Taroom Trough, located between Chinchilla and Roma. The government is positioning this as Australia’s first major new oil province since the 1970s.

• Domestic Fuel Security: In early 2026, Shell began producing high-quality crude oil (approx. 200 barrels a day) at this site, which is being refined into diesel at the Eromanga refinery.
• Fast-Tracking: The government has launched a Taroom Trough Development Plan to streamline trunk infrastructure and has called on the Federal Government to remove “duplicated” environmental approvals to speed up production.

3. Bridging the Gap: Gas and Renewables

While the government has repealed Labor’s strict renewable energy targets, it is still facilitating massive growth in the sector through private partnerships rather than solely state-run builds.

The Investor Gateway & QIC Partnerships

The Queensland Investment Corporation (QIC) is now acting as the “front door” for private capital. Major projects currently being fast-tracked include:

• The Brigalow Gas Peaker (400 MW): A critical “firming” asset near Chinchilla. CS Energy has acquired a 20% stake but will take 100% of the power to ensure the grid remains stable when the sun isn’t shining.
• Wind Energy Hubs: Partnerships with private developers are advancing the Boulder Creek (228 MW) and Lotus Creek (285 MW) wind farms.
• North West Energy Fund ($200m): This fund is specifically targeting the minerals-rich North West, funding storage solutions for the Dugald River Mine and improving the reliability of the grid in Julia Creek.

4. Transmission: From “Supergrid” to Targeted Links

The government has scrapped the previous administration’s 500kV “Supergrid” backbone, citing high costs. Instead, they are prioritising:

• CopperString Eastern Link (330kV): Connecting the North West to the National Electricity Market (NEM) by 2032.
• The Gladstone Project: Urgently reinforcing the Central Queensland network to prepare for the potential retirement of the Gladstone Power Station in 2029.

Analyst Note: By keeping coal plants running longer and encouraging private gas investment, the government claims it will save the system $26 billion in investment costs by 2035, which they argue is the primary driver behind the immediate downward pressure on power bills.